365Telugu.com Online News, Delhi, February 28th, 2023: Cash-strapped SpiceJet has restructured $100 million in equity shares, compulsorily convertible debentures (CCDs) due to Carlyle Aviation Partners. The company announced this on Monday.
Carlyle Aviation Partners will buy a 7.5 percent stake in the airline in exchange for its debt, the company said in a statement. Carlyle Aviation Partners is a leasing company.
SpiceJet Chairman and Managing Director Ajay Singh said, Carlyle Aviation Partners’ acquisition of a stake in our passenger and cargo business adds to SpiceJet’s SpiceExpress capabilities. This agreement will be an opportunity for change, a moment of transformation for us.
29.5 million dollars (Rs 244.28 crore) worth of equity shares to Carlyle Aviation Partners at Rs. 48 per share, whichever is higher than the price set by SEBI, the company said its board of directors has approved in its meeting to issue the shares. After the transaction, Carlyle Aviation Partners will hold 7.5 per cent equity stake in SpiceJet.
In addition, $65.5 million in mandatory convertible debentures will also be issued in cargo company SpiceExpress & Logistics Pvt Ltd in exchange for the lease amount due to Carlyle. Carlyle leased 13 aircraft to SpiceJet.
Also, Rs. The no-frills carrier will also use the Qualified Institutional Buyer (QIB) route to raise up to Rs 2,500 crore, the statement said.
SpiceJet’s board has approved the restructuring of aircraft leasing firm Carlyle Aviation Partners by invoking over USD 100 million into equity shares and compulsory convertible debentures (CCDs).
Commenting on this CCD restructuring, SpiceJet Chairman and Managing Director Ajay Singh said, “The acquisition of Carlyle Aviation Partners’ stake in our passenger cargo business will add SpiceJet and SpiceExpress capabilities, and this deal will allow the company to grow.
Moreover, he said that after this agreement, the debt will also reduce significantly. Speaking on this occasion, he disclosed that similar agreements will be made with other leasing companies in the coming period.